Building an XBRL Basel II solution in Europe The COREP XBRL project

AGENDA Business case European Basel II framework COREP concept Superset of reports Data Matrix COREP project Architecture Test cases Project team

Business case: XBRL use on COREP Bank Supervisor Bank operations, controls…. Presentation, Analysis… Risk Management Operations Counterparties Collateral … IS Supervisory Reports Other data … Report ------------------------------ Aggregator Reception XBRL instance

Business case: XBRL use on COREP Basel II Basel II XBRL implementation COREP XBRL (National) COREP XBRL (Europe) Bank Supervisor Internet Bank operations, controls…. Presentation, Analysis… Errors Errors Risk Management Operations Counterparties Collateral … IS Supervisory Reports Other data … Basel II App. Basel II App. to XBRL from XBRL Report ------------------------------ Report ------------------------------ XBRL core File Transfer (National)

Business case - Definition COREP: defining a COmmon REPorting framework around the solvency ratio for credit institutions and investment firms under the European Union Capital Requirements. (Based on Basel II, Pillar I) Committee of European Banking Supervisors www.c-ebs.org

Business case - requirements Flexibility: each supervisor is allowed to choose the scope as well as the level of aggregation of information required; the framework will allow for flexibility also to accommodate for differences in the exercise of the national options foreseen in the Capital Requirements, for instance with reference to the treatment of small institutions; Consistency: the same concepts and terminology have been used as far as possible; Standardisation: the number of different templates has been minimised.

Business case – European framework Basel II European Law 9X,XX% Basel II compatible Directives 2000/12 & 93/6 Transposition into national Legislation Country 1 Country 2 Country 3 Country 25 National Regulation FSA 1 FSA 2 FSA 3 FSA 25 National Implementation Report 1 ------------------------------------ Report 2 Report 3 ---------------------------------------------------------------------------------------------------------------------------------------------------------------- Report 25 ---------------------------------------------------------------------------------------------------------------------------------------------------------------- XBRL challenge!

COREP concept: extension COREP superset of reports Large report Custom report Medium report Small report

COREP concept: extension vs. Pillars Future templates? Pillar I Capital COREP Templates Today Pillar I Capital Pillar II Supervision Pillar III Market

COREP concept: template

COREP concept: template Dimension 2 Dimension 1 Measure Measure Measure Measure Dimension 3 Dimension 4

COREP concept: Data Matrix All the dimensions are optional! EXPOSURE TYPES EXPOSURE CLASSES STANDARD APPROACH CAPITAL REQUIREMENTS

Deliverables COREP project: goals Initial COREP XBRL taxonomy Set of non-confidential test cases Basic collaborative environment

COREP Project: forecast by January 21st

COREP project: Architecture Initial XML/XBRL taxonomy based in COREP Technological challenge 17 Dimensions Exposure type, Exposure classes, Risk weights… 24 Measure sets Exposure value, Capital requirements, … 26 Templates (Dimensions x Measures) SA Capital requirements, IRB Capital requirements… Taxonomy description at www.corep.info Simplest solution for the easiest implementation Key XBRL “gurus” are participating in COREP

COREP project: Instance <!-- Context1   -->   <m-re:LastSemester decimals="0" contextRef="Context1" unitRef="Unit1">0</m-re:LastSemester>   <m-re:RelevantIndicator decimals="0" contextRef="Context1" unitRef="Unit1">0</m-re:RelevantIndicator> <m-re:OwnFundsRequirements decimals="0" contextRef="Context1" unitRef="Unit1">0</m-re:OwnFundsRequirements> <!-- Context2  -->   <m-re:LastSemester decimals="0" contextRef="Context2" unitRef="Unit1">0</m-re:LastSemester> <m-re:RelevantIndicator decimals="0" contextRef="Context2" unitRef="Unit1">0</m-re:RelevantIndicator>   <m-re:OwnFundsRequirements decimals="0" contextRef="Context2" unitRef="Unit1">0</m-re:OwnFundsRequirements> - <context id="Context1"> - <entity>  <identifier scheme="www.DemoBank.com">DemoBank</identifier>   </entity> - <period>  <instant>2005-12-31</instant>   </period> <scenario>   <dims:dimMemRef xlink:type="simple" xlink:href="t-op-2005-06-30.xsd#t-op_DimensionNameBankingActivities"> d-re:TotalBankingActivitiesSubjectToBia</dims:dimMemRef>   </scenario>  </context> - <context id="Context2"> - <entity>  <identifier scheme="www.DemoBank.com">DemoBank</identifier>   </entity> - <period>  <instant>2005-12-31</instant>   </period> - <scenario>   <dims:dimMemRef xlink:type="simple" xlink:href="t-op-2005-06-30.xsd#t-op_DimensionNameBankingActivities"> d-re:TotalBankingActivitiesSubjectToSa</dims:dimMemRef>   </scenario>   </context>

COREP project: Test cases Set of non-confidential test cases: Anonymous: No reputation risk Public: to be used everywhere Early involvement of banks & users Hands-on experience in COREP Quality control of XBRL taxonomies As simple as fulfilling a spreadsheet but… With the intrinsic complexity of Basel II

COREP project: Test cases flow Anonymous Information COREP-XBRL Group Anonymous Information test@corep.info P R O J E C T M A N G 2 Doc File e-mail 1 3 Doc, Pdf,… Files Excel File Mapper COLLABORATING INSTITUTION Anonymous upload Excel File COLLABORATING INSTITUTION COLLABORATING INSTITUTION XBRL printout XBRL Instance 4 COLLABORATING INSTITUTIONS SUPERVISORS XBRL COMMUNITY OTHERS www.corep.info 5 Public Repository Non compliant test cases Anonymous Comments

COREP project: Request for testing Common framework for the reporting of the solvency ratio (COREP) by credit institutions To test the COREP XBRL project, institutions are invited to participate by providing test data on a best effort basis. Please visit www.corep.info for details.  Who can participate? Any institution that has access to data of banking activities, like for example, credit institutions, consultant firms or any other party interested in participating. How to participate? Institutions should provide test cases using this spreadsheet (www.corep.info/documents/coreptest.zip) and attaching all the relevant documentation associated. No XBRL knowledge is necessary! Collaborating institutions will acquire through their participation in this process: A deeper and better understanding on the COREP reporting framework for the solvency ratio. A chance to provide comments on how the proposed framework works. This may help institutions to provide comments on the CEBS consultation paper. An early knowledge about the availability in their systems of the information that will be required in the future for solvency reporting. The collaboration in this open process will also allow the Institutions to benefit from the experiences, comments, suggestions and questions posed by other members of the banking industry, market participants and XBRL experts. Questions? e-mail to test@corep.info

Basic collaborative environment COREP project team Basic collaborative environment Multinational project team 50 participants from 12 countries on kick-off workshop Different skills Supervisor – business Supervisor – IT experts XBRL practitioners Banks, consultants & providers University Extensive use of Internet tools Website www.corep.info E-mail list & repository on Yahoo Group Conference call

Acknowledgments Name Country Affiliation Adrian Abbott UK FSA Ignacio Boixo ES NCB Alejandro Sanz Infodesa Ignacio Hernández-Ros Soft.AG Aliki Kazakopoulo GR J. Emilio Labra Prof.Dr. Annica Lundblad SE PwC Javier Cobo Fujitsu Antonio Menchero Javier de Andres Antonio Sánchez-Serrano Jean-Marie Coudière FR Arturo Labanda Jesus F. Liger Azertia Bryce Pippert USA UBmatrix Johan Giertz Bank César Pérez-Chirinos José Luis F. Cuñado Charles Hoffman Josef Macdonald IASB Cormac McKenna IE Katrin Schmehl DE Cristina Mena inorme Klaus Baumann Daniel D'Amico XBRL Krisztina Tamási HU Daniel Hamm Magdalena Llano Scholar David Castro Michele Romanelli IT Delphine Moreau Olivier Servais BE Dennis Pels NL Pablo Navarro Don Inscoe Pamela Maggiori Emilio Querol Panagiotis Voulgaris Fernando Navarrete Paolo Milani Fernando Wagener Pedro Lorca Francesco Canfora Phil Walenga Francisco Flores Ron Baremans Frédéric Marié Victoria Santillana AFI Gustavo Garcia IBM Walter Hamscher

Test cases are more than welcome. Fell free to join the COREP Club! Thanks for your attention.